Gold Weekly Price Forecast – Gold Markets Rally at The Weekly Timeframe

Gold Markets Weekly Technical Analysis

The gold market had plunged initially during the week but has turned around quite nicely to show signs of strength. Bonds rates in the United States have dropped, the CPI numbers on Thursday were a shocking miss, but on Friday they were a shocking miss as well. The difference, of course, is the PPI numbers are much hotter than anticipated, so confusion reigns.

And at this point in time, I think you were just looking at a market that is more or less stuck doing what it’s been doing, it’s consolidating. If we can break above the $2,450 level, it’s possible that this market could go higher, perhaps reaching the $2,500 level. Short term pullbacks will be thought of as buying opportunities. And with the geopolitical concerns out there being what they are, I think you’ve got a situation where you have to assume that this is a one way trade at the moment.

You can only be a buyer. You cannot be a seller. The $2,280 level is the bottom of a major support level that starts at about 2300, and that’s assuming that it even comes into the picture. I don’t even think we got that low this time. This looks like a market that’s getting ready to break out. And once it does, it really should start to take off to the upside, targeting $2,500 rather quickly and then probably much higher than that given enough time. Let’s be honest here, we have more than enough geopolitical risk out there to drive gold higher.

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